UPM Annual Report 2025

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Financial Statements

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Business area information for the year ended December 31, 2025

The goods and services included in sales revenue of each business area are presented in below table:

Eliminati ons and reconcili ations 2)

UPM Adhesive Materials

UPM Specialty papers

Business area

Description and products

UPM Energy

UPM Com papers

UPM Plywood

Other operations

€ million, or as indicated

UPM Fibres

Group

UPM Fibres

UPM Fibres consists of UPM Pulp and UPM Timber business units.

External sales Internal sales

2,908

480 136 615

1,655

1,108

2,459

389

659

-2

9,656

UPM Pulp offers a versatile range of responsibly-produced pulp grades suitable for a wide range of end-uses such as tissue, specialty and packaging papers, graphic papers and board.

499

—

206

34

20

34

-930 -932

—

Total sales

3,407

1,655

1,315

2,493

409

693

9,656

UPM Timber offers certified sawn timber for joinery, packaging, furniture, planing and construction end-use segments.

Comparable EBIT

283

151

124

147

181

35

9

-10

921

UPM Energy

UPM Energy generates cost-competitive, zero-carbon electricity. Operations also include physical electricity and financial portfolio management as well as services to industrial electricity consumers and producers. UPM Adhesive Materials offers innovative and sustainable self-adhesive label materials for branding and promotion, information and functional labeling in the food, beverage, personal care, pharmaceutical and logistics segments, for example. UPM Specialty Papers offers labeling and packaging materials as well as office and graphic papers for labeling, commercial siliconizing, packaging, office use and printing. UPM Communication Papers offers an extensive product range of sustainably produced graphic papers for advertising and publishing as well as home and office uses. UPM Plywood offers high quality WISA® plywood and veneer products for construction, vehicle flooring, LNG shipbuilding, parquet manufacturing and other industrial applications. Other operations include UPM Forest, UPM Biofuels and UPM Biochemicals business units as well as biofuels development and Group services. UPM Forest secures competitive wood and biomass for UPM businesses and manages UPM-owned and privately-owned forests in North Europe. In addition, UPM offers forestry services to forest owners and forest investors. UPM Biofuels produces wood-based renewable diesel for all diesel engines and renewable naphtha that can be used as a biocomponent for gasoline or for replacing fossil raw materials in the petrochemical industry. UPM Biochemicals offers innovative wood-based biochemicals for replacing fossil-based raw materials in various applications such as textiles, PET bottles, packaging, cosmetics, pharmaceuticals, detergents, rubbers and resins.

Items affecting comparability in operating profit

0

—

-70

-3

-75

-4

-17

-1

-171

Operating profit Finance costs, net

282

151

53

144

107

31

-8

-11

749 -59

UPM Adhesive Materials

Income taxes

-200

UPM Specialty Papers

Profit for the period Operating assets 1) Deferred tax assets

491

6,662

2,486

1,003

891

1,206

265

3,576

-244

15,845

UPM Communication Papers

413

UPM Plywood

Other non-operating assets

58

Other financial assets

1,216

Other operations

Total assets

17,532

Operating liabilities 1) Deferred tax liabilities

315

56

160

219

315

37

380

-230

1,252

692 565

Other liabilities

Other financial liabilities

4,688 7,197

Total liabilities

Other items Change in fair value of forest assets and wood harvested Share of results of associates and joint ventures Depreciation and amortization

65

—

—

—

—

—

80

—

144

2

—

—

—

0

—

-2

—

0

Key performance indicators and financial targets UPM aims to grow its comparable EBIT over the long term. The Group has a portfolio of five businesses that operate on growing markets and one business that faces declining demand. All of UPM's businesses are competitive and have strong market positions. Financial target setting, follow up and allocation of resources in the Group’s performance management process is mainly based on the business area comparable EBIT and comparable ROCE.

-294

-7

-52

-59

-65 -44 891

-20

-43

— —

-541

Impairment charges

0

—

-9

2

0

-3

-53

UPM presents comparable performance measures to reflect the underlying business performance and to enhance comparability from period to period. However, the comparable performance measures used by management should not be considered in isolation as a substitute for measures of performance in accordance with IFRS. Business area information including description of items affecting comparability is presented below.

Capital employed, December 31

6,348 6,745

2,430 2,603

843 860

672 706

228 230

3,196 3,112

-478 -484

14,129 14,791

Average capital employed

1,018

Capital expenditure

93

11

198

24

31

8

257

—

621

Capital expenditure, excluding acquisitions and shares

62

11

27

24

30

8

247

— — —

409

Comparable ROCE, % Personnel, December 31

4.2

5.8 86

14.4

20.9

17.8

15.4

0.3

6.7

2,653

3,287

1,820

4,728

1,542

1,011

15,127

1) Business area’s operating assets include goodwill, other intangible assets, property, plant and equipment, leased assets, forest assets, financial assets at FVOCI, investments in associates and joint ventures, inventories and trade receivables. Operating liabilities include trade payables and advances received. 2) Eliminations and reconciliations include the elimination of internal sales and internal inventory margin and the changes in fair value of unrealized cash flow and commodity hedges that are not allocated to segments. Refer to » Other financial information on Alternative performance measures, for definitions of key figures and reconciliation to measures presented in the consolidated income statement and balance sheet prepared in accordance with IFRS Accounting Standards.

UPM Financial Report 2025

270

UPM Financial Report 2025

271

270

271

UPM Annual Report 2025

UPM Annual Report 2025